3 Sweetest Words For Investors. Beat and Raise
Micro over Macro!
If you like this free tech investing email newsletter, subscribe HERE. Please follow me on Twitter and Instagram.
1) Beat and Raise
Day-to-day this market is a roller coaster ride with the next big drop or rally seemingly a tweet away.
Geopolitical turmoil, trade wars and plunging sovereign bond yields are dominating the headlines, but investors may be better served to not think too much about the unpredictable. Take a step back.
I write this mantra a lot: Micro over Macro. It’s literally on my Twitter profile. Focus on finding companies that are making products and services so good, delighting customers so much, they can do well in any economic environment.
Famed hedge fund manager Jeff Vinik once said he simply tries to find companies that can “achieve earnings above consensus expectations.” Basically, the sweet, sweet words investors want to hear after a company reports: beat and raise.
Our Barron’s Tech Trader column has recently featured Take-Two (TTWO), Shopify (SHOP), and Match Group (MTCH), all of which have reported numbers this month that markedly exceeded analyst expectations, provided guidance above Wall Street’s consensus, and posted big stock gains despite the volatility in the stock market. Three beat and raises.
So what is the company that may be best primed to do this over the next few quarters?
Hint: It could be related to a semiconductor company which launched a chip last week. The new offering is now independently confirmed by reputable third-party technology sites to generate up to 50% to 100% higher performance at a 40% lower price versus its Intel competition for the server chip market worth tens of billions.
Read my full Tech Trader column HERE and find out.
2) Recommended reads
-Samsung Galaxy Note 10+ 5G Is a Huge Mess (PC Mag)
The current state of 5G is not ideal. Also what will be the killer app to drive upgrades? Things that make you go hmm.
-Nintendo, Sony, Microsoft to require loot box odds disclosure (Games Industry Biz)
A solid first step. Gamers should know the odds for the randomized loot box purchases.
-Angie's BOOMCHICKAPOP: Angie & Dan Bastian (How I Built This Podcast)
Great interview on how an entrepreneurial couple turned kettle corn into a business with hundreds of millions.
—
Comments? What should I be covering? Let me know by replying to this email.
Tae Kim
Tech Reporter, Barron’s
—
If you like this free tech investing email newsletter, subscribe HERE.
I write about technology, the stock market and video games. You can also check out my bio and archive of stories on taekim.com. Please follow me on Twitter and Instagram.